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New Options Trade: Very High Upfront Income, Bullish Vertical Put Spread

This recently IPO’d business is very attractive. And the significant near-term volatility has given rise to an attractive high-income-generating options trade. The trade strategy sounds complex (i.e. “bullish vertical put spread”), but it’s not. It puts attractive upfront premium in your pocket today, it gives you a chance to pick up shares of this attractive stock at a lower price, and it gives you a little insurance on the downside (i.e. your max loss is limited). We believe this is an attractive trade to place today—and potentially over the next few trading sessions—as long as the underlying share price doesn’t move too dramatically before then.

Unity Software: A Long-Term Winner

Unity Software provides tools to videogame developers. The company recently completed its initial public offering in September. The business is healthy, revenue is growing rapidly, and it has a large total addressable market. In this report, we analyze Unity’s business model, its market opportunity, competitive position, valuation, risks, and finally conclude with our opinion on investing.